Nationwide figures show house price growth accelerating across all UK regions in the final quarter of 2006.
* House price growth picks up in all UK regions in Q4, averaging 3.3%
* Prices in Northern Ireland increase at almost five times UK average
* London house price growth moves back into double-digits for the first time in two years
* Northern region and Wales reverse falls seen in 2005
* UK Average annual price change is up by 9.3%
* Latest UK average price in Q4 is now £172,065 (£168,460 in Q3)
Commenting on the figures Fionnuala Earley, Nationwide's Group Economist, said: "Stronger house price growth across the whole of the UK pushed the annual rate of house price inflation in the UK up to 9.3% in Q4 2006. This represents a £40 increase per day and pushed the price of a typical house up to £172,065. The top three performers in the final quarter of the year were Northern Ireland, Scotland and London, but even the relatively weaker regions in the Midlands and North have seen a marked pick-up in house price inflation this quarter. Northern Ireland stands out with an annual house price growth rate of 44.1% - almost five times faster than the UK average and almost three times faster than the 16% recorded in next best performer, Scotland.
London remains the strongest performer in England. The capital is now seeing double-digit house price growth for the first time in over two years and with large bonus payments in the City, prices could be pushed even higher over the next few months. London's strength is continuing to spill over to surrounding regions, leading to steady gains in house prices in the neighbouring regions of Outer Metropolitan and Outer South East. While house price gains are strong in London and the South East, other parts of England are not entirely being left behind.
Perhaps the most surprising story this quarter is the recovery of the Midlands and Northern English regions, which have, until recently, underperformed. The Northern region in particular saw a complete turnaround in the final quarter of the year. Prices in the Northern region increased by 8.6% over the year, taking it from bottom in the English league table last quarter to third and wiping out the small fall in prices in Q3 2006. Wales saw a similar revival in 2006, experiencing an 8.9% increase in prices compared to the 0.1% fall experiences in 2005."
